QUESTION 40 Bohannon Corporation owned 10,000 shares of Hunter Corporation. These shares were purchased in 2017 for $90,000. On November 15, 2021. Bohannon declared a property dividend of one share of Hunter for every ten shares of Bohannon held by a stockholder. On that date, when the market price of Hunter was 528 per share, there were 90,000 shares of Bohannon outstanding. What is the impact on earnings if any from this property dividend (including entries to prepare for the dividend)? QUESTION 41 What is the impact on Retained Earnings if any from this property dividend? The following information relates to the remaining questions in the test. Comparative statements of shareholder's equity for Cael Sanderson Corporation were reported as follows for the fiscal years ending December 31, 2021 2022 and 2023 Cael Sanderson Corporation Statements of Shareholders Equity For the years ended December 31, 2021 2022 2023 (5 in millions) Preferred Common Additional Stock Stock Paid in Retained 51 par Capital Earnings Total Shareholders' Equity 510 par $55 $1,878 510 $495 470 63 7 Balance at 1/1/21. Sale of preferred shares Sale of common shares Cash dividend preferred Cash dividend, common Net income $2428 480 20 (1) (16) 290 (1) (16) 290 Balance at 12/31/21 $2,151 $10 Preferred Stock $10 par $62 Common Stock $1,028 Additional Paid-in Capital 53.251 Total Shareholders Equity Retained Earnings $1 par $10 $62 (3) $1,028 (27) Balance at 171/22 Retirement of shares Cash dividend preferred Cash dividend, common Stock Dividend $2,151 (20) (1) (20) (5) $3,251 (50) (1) (20) 5 Cash dividend, common... Net income (16) 290 (16) 290 Balance at 12/31/21 $2,151 $10 Preferred Stock 510 par 562 Common Stock $1,028 Additional Pald-in Capital $3,251 Total Shareholders Equity Retained Earnings $1 par $10 $62 (3) $1,028 (27) Balance at 1/1/22 Retirement of shares Cash dividend, preferred Cash dividend, common Stock Dividend..... Net income $2.151 (20) (11 (20) (5) 380 53.251 (50) (1) (20) un 380 Balance at 12/31/23 $2,485 $15 Preferred Stock $10 par $59 Common Stock $1,001 Additional Paid in Capital $3,560 Total Shareholders Equity Retained Earnings Si par 515 $59 $1,001 Balance at 1/1/22 Cash dividend, preferred Cash dividend, common Stock Dividend Net income $2.485 (1) (22) 165) 412 $3.560 (1) 1221 6 59 412 Balance at 12/31/23 315 $65 $1,050 $2,809 $3.949 Question In the required journal entryties) to DECLARE but not pay the cash dividends for preferred and common stock in 2021, what is the impact on Working Capital? For all of these last questions present your answer in millions. If you think the answer is $34,000,000 write 34 $15 Balance at $65 $1.050 52.809 53,949 Question. In the entries to record the issuance of common and preferred stock in 2021, total PIC increases by? Answer in millions. If you think the answer is $200,000,000 answer 200. Question In the 2022 entry to retire shares how much cash is used. Enter as positive number in millions. Question The preferred stock dividend is: 1. presents components of small and large 2. large 3. cannot be determined 4. small Question In the 2023 entryties) to record all dividends for Sanderson Co. the net impact on Working Capital is your answer should consider dividends being both declared and paid)
